University of Windsor New Faculty Outline of Benefits 2006

1. University of Windsor New Faculty Outline of Benefits 2006 July, 2006

2. Presentation Overview • Types of Pension Plans • Faculty Pension Plan • Life as an Active Member • Joining the Pension Plan • Retirement • Survivor Options • Terminating Membership • Past Service Pension Adjustments • Monthly Pension Indexing • Overview of Health, Dental, Life and additional benefits

3. Types of Pension Plans • Defined Benefit Plans (DB) • Benefit is defined by a formula • Pension at retirement is always known • Most often the employer assumes the investment risks / rewards • Defined Contribution Plans (DC) • Contributions are defined by a formula • Pension at retirement is unknown • Most often the employee assumes the investment risks / rewards • Hybrid Plan – a combination of DB and DC • Attempts to provide the best of both worlds

4. Faculty Pension Plan • Hybrid Pension – Two Components • Money Purchase (MPP) (Defined Contribution) AND • Minimum Guarantee (MGP) (Defined Benefit)

5. Faculty Pension Plan • Money Purchase (Defined Contribution) • 6% Member Contribution PLUS 6% University Contribution credited to individual member accounts along with fund rate of return • Money Purchase Pension (MPP), payable monthly at retirement • MPP = Total MPC Account at Retirement Actuarial Annuity Factor • Actuarial assumptions include mortality, retirement age, and spousal age.

6. Faculty Pension Plan • Minimum Guarantee (Defined Benefit) • 1.5% of Best Average Earnings (BAE) up to Final Average YMPE (FYMPE) PLUS • 2 % of BAE above FYMPE Multiplied by • Years (and part years) of Pensionable Service in the plan

7. Plan Definitions • BAE = 12 X average of Members monthly earnings in the 48 months of highest earnings, (not necessarily consecutive) prior to retirement. • Earnings = Member’s basic nominal salary, excludes overload, allowances, bonuses or stipends etc. • YMPE = Year’s Maximum Pensionable Earnings in effect under the Canada Pension Plan. • (2006 = $42,100) (2005 = $41, 100) (2004 = $40,500) (2003 = $39,900) • FYMPE = Average of YMPE during same period used to determine your BAE.

8. Life as an Active Member • Contributions – 6% of nominal salary, with matching University contribution, subject to CCRA contribution limits. This includes nominal salary paid in the form of a Research Grant. Special rules for certain types of leaves such as sabbaticals, education leaves. • Once an enrolled active member you may not opt out. • Pensionable earnings, service and contributions captured monthly • Immediate Vesting – ownership of pension benefits • Pension Adjustment – T4 - deemed value of one year plan participation – reduces personal RRSP room • Annual Pension Statement – within 6 months of plan year end • Plan Year runs from July 1st to June 30th of each year

9. Faculty Pension Plan – Joining the Plan • Full Time, Permanent Faculty Compulsory membership coincident with or next following Employment Date. • Limited Term Appointments Voluntary participation coincident with or next following Employment Date. • Sessional Instructors and Part Time Employees Voluntary participation coincident with or next following the completion of 24 months of Continuous Service provided you have: (1) earned at least 35% of the CPP Year’s Maximum Pensionable Earnings or (2) worked at least 700 hours in each of the two (2) immediately preceding calendar years.

10. Faculty Pension Plan – Retirement • Normal Retirement Date - July 1st following the last day of the contract year in which the member attains age 65 - minimum age 65 to receive an unreduced pension • Early Retirement Date - anytime after age 55 - MPP pension is account balance annuity - MGP subject to actuarial reduction - upon mutual consent

11. Example of Annual Pension Payable • Date of retirement = September 1, 2006 • Pensionable Service = 35 years • Best average earnings = $90,000 • Final average YMPE = $40,900 • MPC Account Balance = $500,000 • Actuarial annuity factor = 10.2203 • MPP = $500,000/10.2203 = $48,922.24 per year • MGP = [35] x [0.015 x $40,900 + 0.02 x ($90,000 - $40,900)] = $55,842.50 per year • Basic Benefit payable at retirement = $55,842.50 per year

12. Faculty Pension Plan – Survivor Options • Death while active – Greater of MPP account or MGP value • Lump sum or Spousal Monthly Pension • Death after Retirement – based on option chosen at retirement • If single at retirement or with spousal waiver • Life Only, Life 5, 10 or 15 • If legal spouse at retirement or no spousal waiver on file • Joint and Survivor 60, 66 2/3(Guar 5), 75 or 100% • Basic pension reduced 10% to 20% to provide spousal benefit • Spouse and member can waive 60% option • In ALL cases, options are permanent on 1st date of retirement

13. Faculty Pension Plan – Terminating before Retirement • Termination Benefit is the Greater of: • Money Purchase Component Account balance to-date • Commuted value of Minimum Guaranteed Pension earned to-date • Transfer Options: • Transfer termination benefit to a locked-in vehicle if employed > 24 months • Transfer termination benefit to a non locked-in vehicle if employed < 24 months • Leave benefit in plan for deferred pension at a future retirement date • Transfer to a new employer, if allowed • At Retirement - In Lieu of Pension, Members MAY transfer entitlements from plan • Considered a termination, not a retirement • Forfeit Minimum Guarantee Pension, lifetime pension indexing rights • Higher investment fees, potentially greater investment risk to member • Forfeit rights to Benefits, Tuition Remission, H.K. memberships etc. • Forfeit future Surplus sharing

14. Past Service Pension Adjustments • What are they? • Adjustments most often created by retroactive pension plan improvements • Example: MGP formula change from 1.45%/2% to 1.5% / 2% • University must calculate value of retroactive improvement and report this to Canada Customs and Revenue Agency (T215) • Further reduces personal RRSP room and sometimes forces RRSP withdrawals

15. Faculty Pension Plan – Indexing Monthly Pension • Both the MPP and MGP adjusted every July 1 • MPP adjusted by the fund rate of return in excess of 6% and an additional adjustment for mortality experience – can increase or decrease • MGP increase based on the increase in the Consumer Price Index • After the MPP and MGP have been adjusted (plus or minus), we compare the two, the larger amount becomes the new pension payable starting at July 1st • Indexing rights passes to those with a Survivor pension

16. Faculty Plan – Health Insurance Overview • Benefits are effective with your date of employment. • Green Shield Canada provides single or family coverage. • Coverage includes: • Drugs • Semi-private and Private hospitalization • Extended health services, including • Registered Massage therapy - $600 per calendar year • Physiotherapist – no maximum • Chiropractic - $450 per calendar year • Speech therapy - $800 per calendar year • Psychologist – 15 visits per calendar year paid at 50% of the fee schedule • Out of Province/Country coverage – referral / emergency 180 days per visit • Vision - $350 every 24 months • Eye exams - $75 every 24 months • Audio – hearing test $75 every 5 years, hearing aid $1,500 every 5 years • Annual $10/$20 deductible • Health benefit premiums are paid by the University

17. Faculty Plan – Dental Insurance Overview • Benefits are effective with your date of employment. • Green Shield provides single or family coverage. • Coverage includes: • 80% coverage for Basic & Comprehensive Services • 80% coverage for Major Restorative Services • 50% for Orthodontic Services - $3,000 individual lifetime maximum • Basic services cover recalls every 9 months • Paid at the current year O.D.A. rates • Dental services may be subject to limitations • Dental benefit premiums are paid by the University

18. Faculty Plan – Group Insurance Overview • Benefits are effective with your date of employment. • Short Term Disability program (Employer Insured) • Provides 105 days fully paid salary • Long Term Disability insured by Great West Life • Provides pro-rated benefit to a maximum of $10,000 monthly indexed • LTD premium is Employee paid – LTD benefit is Non Taxable • Basic Life Insurance (Sun Life) A.D.&D. (Chubb) • Insurance benefit of three (3) times annual salary, rounded to the next highest $1,000 – to a maximum of $350,000 • University paid Premiums • Optional Life, Dependant Life and A.D.&D. available • Employee paid Premiums

19. Faculty Plan – Additional Faculty Benefits • Benefits are effective with your date of employment. • Employee Assistance Program (EAP) • Full Time Faculty , their dependants (to age 21) and spouse eligible for EAP. • Provided by Warren Scheppell, a leader in EAP programs • Provides confidential assistance and counseling with issues such as marital or family relations, elder / child care, stress management, substance abuse, some legal assistance etc. • Tuition Remission (taxable benefit) • Full Time Faculty , their dependants and spouse eligible for free tuition. • Sessional Instructors entitled to one tuition credit course per year in a year the Instructor teaches one (1) or more courses. • Some limitations apply to this benefit. Contact Human Resources. • St. Denis Centre – Fitness Facility (non taxable benefit) • Full Time Faculty, their dependants and spouse entitled to free basic membership. • Sessional Instructors are provided with membership during the semesters in which they are teaching. • Some limitations apply to this benefit. Does not include access to the Forge. Contact the St. Denis Centre for more information.